Business Use of Personal Vehicles
Is my business properly protected?
Often when I meet clients for a mid-year or annual review, I’m asked about this topic. Not only in terms of coverage, but also in terms of Policy or an addition to the Employee handbook.
Let me explain. Whether you are a Registered Non Profit Group or a For Profit Corporation, the needs are the same. Here is an example:
My construction crew is busy on the job site. We are a little behind but the crew needs a break. I ask one of the crew who isn’t terribly busy at the moment if they could do a run to the local coffee shop for coffee and snacks. He jumps into his personal vehicle to do the coffee run. Unfortunately on the way there, he is involved in a serious accident with several injuries.
There are a couple of things to consider in this example.
· Did the employee advise his personal insurer that he may “occasionally” use his vehicle for work?
· Did we have a policy in place that requires employees to advise their personal insurers that they may “occasionally” use their vehicles for work?
· Even if the employee has advised his personal insurer of this, if his limits are too low to cover the lawsuits or our Company is named in a lawsuit (because we asked him to do this errand), will my policy kick in to provide additional limits and defense costs?
Non Owned Automobile Coverage is available as an extension of most Commercial General Liability policies. Other coverage is available if you rent vehicles for business trips in the corporate name.
Whether you occasionally ask an employee to run an errand for the business, or you have a sales force that regularly uses Personal Vehicles for work, you need to have this conversation with your Broker.
Because we at Upper Canada Commercial Insurance Brokers are Business Insurance Specialists, we can offer advice and tailor coverage specific for you needs. Our decades of experience in Commercial Insurance means that in most cases, we’ve seen it or heard it before. We can help.
Scott H.Lee, RIB,CAIB.